European Stocks Regain Ground

By Shashwat Chauhan and Shubham Batra

(Reuters) – European stocks regained ground on Thursday, boosted by technology and resources shares, while Britain's FTSE 100 dipped after the Bank of England (BoE) cut interest rates but projected higher inflation following the new government's first budget.

The pan-European STOXX 600 closed 0.7% higher, powered by a 2.2% bounce in the tech sector, recouping losses from the previous session. Autos also added 2.2% after a more than 2% decline on Wednesday.

The basic resources index supported gains, rising 3.9% for its best day in six weeks following a rebound in base metal prices.

The FTSE 100 was the only stock index among major European benchmarks that ended in the red, down 0.3%.

The BoE stated the government's plans could add almost half a percentage point to inflation at its peak in just over two years and delay a return to the BoE's 2% target by a year.

Investors are now shifting their focus to the U.S. Federal Reserve's interest rate decision at 1900 GMT.

Europe's STOXX 600 gained as much as 1.9% in the previous session, tracking a surge on Wall Street after Donald Trump recaptured the U.S. presidency, although the index closed lower amid tariff uncertainty.

Market Movers

Among other movers on Thursday, ArcelorMittal (NYSE:MT) gained 6.5% after the world's second-largest steelmaker reported third-quarter core profit above market expectations.

Italy's third-largest lender Banco BPM climbed 9% on plans to bid for full control of Anima Holding, in a deal worth up to 1.6 billion euros ($1.7 billion). Shares of Anima jumped 11.1%.

Dutch fintech company Adyen (AS:ADYEN) slipped 3% after reporting third-quarter processed volume below expectations, while British broadcaster ITV (LON:ITV) lost 12.9% after posting a worse than expected fall in revenue for the nine months ended Sept. 30.

Daimler (OTC:MBGAF) Truck gained 3.1% after the truckmaker reported a marginally better than expected third-quarter core profit.

Germany Faces Snap Election

In political news, Germany's ruling coalition collapsed as Chancellor Olaf Scholz sacked his finance minister, paving the way for a snap election and triggering political chaos in Europe's largest economy. The German benchmark index was up 1.7%.

Rheinmetall (ETR:RHMG) shares rose 9%, leading a rally in aerospace and defense stocks, on expectations that the election of Trump and the sacking of Germany's fiscally conservative finance minister could boost defense spending. Matthew Tuttle, CEO of Tuttle Capital Management, noted that this perceived shift in Germany's fiscal approach could fuel optimism about defense spending plans.